California Legislature—2015–16 Regular Session

Assembly BillNo. 2055


Introduced by Assembly Member Gipson

February 17, 2016


An act to amend Sections 17059.2 and 23689 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2055, as introduced, Gipson. Income taxation: credits: California competes.

Existing law allows a credit against the taxes imposed under the Corporation Tax Law and the Personal Income Tax Law for each taxable year beginning on or after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor’s Office of Business and Economic Development and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. Existing law limits the aggregate amount of credits allocated to taxpayers to a specified sum per fiscal year through 2017-18 and reserves 25% of that amount for small businesses, as defined. Existing law authorizes the Director of Finance to increase the aggregate amount of the economic development credits that may be allocated to taxpayers each fiscal year by $25 million per fiscal year through the 2017-18 fiscal year.

This bill would, beginning in the 2018-19 fiscal year, reserve 25% of the aggregate amount of credits for taxpayers that make qualified sustainable freight investments, as defined, and would require the Franchise Tax Board to review the books and records of these taxpayers to ensure compliance with the taxpayer’s written agreement with GO-Biz. The bill would also make findings relating to California’s seaports and harbors and zero-emissions and near-zero-emissions technology.

This bill would take effect immediately as a tax levy.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) Our state’s waterfront has infrastructure needs that cannot
4be met by private investment alone, and therefore public financing
5mechanisms are required to build the new public works needed to
6support new commercial and industrial development in our seaports
7and harbors. This need is compounded by the additional expenses
8which accompany investment in the next generation of
9zero-emissions and near-zero-emissions equipment and supporting
10infrastructure at marine terminals in California’s public ports.

11(b) The seaports and harbors of California are valuable assets
12of the state that provide special maritime, navigational, recreational,
13cultural, and historical benefits to the people of the state and the
14management and development of these seaports and harbors are
15matters of statewide significance. The investment in the state’s
16seaports and harbors by providing a financing mechanism, through
17the use of tax credits, is a matter of statewide importance that will
18further the purposes of the public trust.

19(c) This legislation is necessary to further incentivize the earliest
20possible investment in, and adoption of, zero-emissions and
21near-zero-emissions technology at California’s public seaports.
22Companies should be encouraged to take on the additional costs
23of purchasing and maintaining zero-emissions equipment and
24supporting infrastructure in partnership with the state to achieve
25the state’s emissions reduction goals.

26

SEC. 2.  

Section 17059.2 of the Revenue and Taxation Code
27 is amended to read:

28

17059.2.  

(a) (1) For each taxable year beginning on and after
29January 1, 2014, and before January 1, 2025, there shall be allowed
30as a credit against the “net tax,” as defined in Section 17039, an
P3    1amount as determined by the committee pursuant to paragraph (2)
2and approved pursuant to Section 18410.2.

3(2) The credit under this section shall be allocated by GO-Biz
4with respect to the 2013-14 fiscal year through and including the
52017-18 fiscal year. The amount of credit allocated to a taxpayer
6with respect to a fiscal year pursuant to this section shall be as set
7forth in a written agreement between GO-Biz and the taxpayer and
8shall be based on the following factors:

9(A) The number of jobs the taxpayer will create or retain in this
10state.

11(B) The compensation paid or proposed to be paid by the
12taxpayer to its employees, including wages and fringe benefits.

13(C) The amount of investment in this state by the taxpayer.

14(D) The extent of unemployment or poverty in the area
15according to the United States Census in which the taxpayer’s
16project or business is proposed or located.

17(E) The incentives available to the taxpayer in this state,
18including incentives from the state, local government, and other
19entities.

20(F) The incentives available to the taxpayer in other states.

21(G) The duration of the proposed project and the duration the
22taxpayer commits to remain in this state.

23(H) The overall economic impact in this state of the taxpayer’s
24project or business.

25(I) The strategic importance of the taxpayer’s project or business
26to the state, region, or locality.

27(J) The opportunity for future growth and expansion in this state
28by the taxpayer’s business.

29(K) The extent to which the anticipated benefit to the state
30exceeds the projected benefit to the taxpayer from the tax credit.

31(3) The written agreement entered into pursuant to paragraph
32(2) shall include:

33(A) Terms and conditions that include the taxable year or years
34for which the credit allocated shall be allowed, a minimum
35compensation level, and a minimum job retention period.

36(B) Provisions indicating whether the credit is to be allocated
37in full upon approval or in increments based on mutually agreed
38upon milestones when satisfactorily met by the taxpayer.

P4    1(C) Provisions that allow the committee to recapture the credit,
2in whole or in part, if the taxpayer fails to fulfill the terms and
3conditions of the written agreement.

4(b) For purposes of this section:

5(1) “Committee” means the California Competes Tax Credit
6Committee established pursuant to Section 18410.2.

7(2) “GO-Biz” means the Governor’s Office of Business and
8Economic Development.

9(c) For purposes of this section, GO-Biz shall do the following:

10(1) Give priority to a taxpayer whose project or business is
11located or proposed to be located in an area of high unemployment
12or poverty.

13(2) Negotiate with a taxpayer the terms and conditions of
14proposed written agreements that provide the credit allowed
15pursuant to this section to a taxpayer.

16(3) Provide the negotiated written agreement to the committee
17for its approval pursuant to Section 18410.2.

18(4) Inform the Franchise Tax Board of the terms and conditions
19of the written agreement upon approval of the written agreement
20by the committee.

21(5) Inform the Franchise Tax Board of any recapture, in whole
22or in part, of a previously allocated credit upon approval of the
23recapture by the committee.

24(6) Post on its Internet Web site all of the following:

25(A) The name of each taxpayer allocated a credit pursuant to
26this section.

27(B) The estimated amount of the investment by each taxpayer.

28(C) The estimated number of jobs created or retained.

29(D) The amount of the credit allocated to the taxpayer.

30(E) The amount of the credit recaptured from the taxpayer, if
31applicable.

32(d) For purposes of this section, the Franchise Tax Board shall
33do all of the following:

34(1) (A) Except as provided in subparagraph (B), review the
35books and records of all taxpayers allocated a credit pursuant to
36this section to ensure compliance with the terms and conditions
37of the written agreement between the taxpayer and GO-Biz.

38(B) In the case of a taxpayer that is a “small business,” as
39defined in Section 17053.73, review the books and records of the
40taxpayer allocated a credit pursuant to this section to ensure
P5    1compliance with the terms and conditions of the written agreement
2between the taxpayer and GO-Biz when, in the sole discretion of
3the Franchise Tax Board, a review of those books and records is
4appropriate or necessary in the best interests of the state.

5(2) Notwithstanding Section 19542:

6(A) Notify GO-Biz of a possible breach of the written agreement
7by a taxpayer and provide detailed information regarding the basis
8for that determination.

9(B) Provide information to GO-Biz with respect to whether a
10taxpayer is a “small business,” as defined in Section 17053.73.

11(e) In the case where the credit allowed under this section
12exceeds the “net tax,” as defined in Section 17039, for a taxable
13year, the excess credit may be carried over to reduce the “net tax”
14in the following taxable year, and succeeding five taxable years,
15if necessary, until the credit has been exhausted.

16(f) Any recapture, in whole or in part, of a credit approved by
17the committee pursuant to Section 18410.2 shall be treated as a
18mathematical error appearing on the return. Any amount of tax
19resulting from that recapture shall be assessed by the Franchise
20Tax Board in the same manner as provided by Section 19051. The
21amount of tax resulting from the recapture shall be added to the
22tax otherwise due by the taxpayer for the taxable year in which
23the committee’s recapture determination occurred.

24(g) (1) The aggregate amount of credit that may be allocated
25in any fiscal year pursuant to this section and Section 23689 shall
26be an amount equal to the sum of subparagraphs (A), (B), and (C),
27less the amount specified in subparagraphs (D) and (E):

28(A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal
29year, one hundred fifty million dollars ($150,000,000) for the
302014-15 fiscal year, and two hundred million dollars
31($200,000,000) for each fiscal year from 2015-16 to 2017-18,
32inclusive.

33(B) The unallocated credit amount, if any, from the preceding
34fiscal year.

35(C) The amount of any previously allocated credits that have
36been recaptured.

37(D) The amount estimated by the Director of Finance, in
38consultation with the Franchise Tax Board and the State Board of
39Equalization, to be necessary to limit the aggregation of the
40estimated amount of exemptions claimed pursuant to Section
P6    16377.1 and of the amounts estimated to be claimed pursuant to
2this section and Sections 17053.73, 23626, and 23689 to no more
3than seven hundred fifty million dollars ($750,000,000) for either
4the current fiscal year or the next fiscal year.

5(i) The Director of Finance shall notify the Chairperson of the
6Joint Legislative Budget Committee of the estimated annual
7 allocation authorized by this paragraph. Any allocation pursuant
8to these provisions shall be made no sooner than 30 days after
9written notification has been provided to the Chairperson of the
10Joint Legislative Budget Committee and the chairpersons of the
11committees of each house of the Legislature that consider
12appropriation, or not sooner than whatever lesser time the
13Chairperson of the Joint Legislative Budget Committee, or his or
14her designee, may determine.

15(ii) In no event shall the amount estimated in this subparagraph
16be less than zero dollars ($0).

17(E) (i) For the 2015-16 fiscal year and each fiscal year
18thereafter, the amount of credit estimated by the Director of Finance
19to be allowed to all qualified taxpayers for that fiscal year pursuant
20to subparagraph (A) or subparagraph (B) of paragraph (1) of
21subdivision (c) of Section 23636.

22(ii) If the amount available per fiscal year pursuant to this section
23and Section 23689 is less than the aggregate amount of credit
24estimated by the Director of Finance to be allowed to qualified
25taxpayers pursuant to subparagraph (A) or subparagraph (B) of
26paragraph (1) of subdivision (c) of Section 23636, the aggregate
27amount allowed pursuant to Section 23636 shall not be reduced
28and, in addition to the reduction required by clause (i), the
29aggregate amount of credit that may be allocated pursuant to this
30section and Section 23689 for the next fiscal year shall be reduced
31by the amount of that deficit.

32(iii) It is the intent of the Legislature that the reductions specified
33in this subparagraph of the aggregate amount of credit that may
34be allocated pursuant to this section and Section 23689 shall
35continue if the repeal dates of the credits allowed by this section
36and Section 23689 are removed or extended.

37(2) (A) In addition to the other amounts determined pursuant
38to paragraph (1), the Director of Finance may increase the
39aggregate amount of credit that may be allocated pursuant to this
40section and Section 23689 by up to twenty-five million dollars
P7    1($25,000,000) per fiscal year through the 2017-18 fiscal year. The
2amount of any increase made pursuant to this paragraph, when
3combined with any increase made pursuant to paragraph (2) of
4subdivision (g) of Section 23689, shall not exceed twenty-five
5million dollars ($25,000,000) per fiscal year through the 2017-18
6fiscal year.

7(B) It is the intent of the Legislature that the Director of Finance
8increase the aggregate amount under subparagraph (A) in order to
9mitigate the reduction of the amount available due to the credit
10allowed to all qualified taxpayers pursuant to subparagraph (A) or
11 (B) of paragraph (1) of subdivision (c) of Section 23636.

12(3) Each fiscal year, 25 percent of the aggregate amount of the
13credit that may be allocated pursuant to this section and Section
1423689 shall be reserved forbegin delete small business,end deletebegin insert “small business,”end insert as
15defined in Section 17053.73 or 23626.

16(4) Each fiscal year, no more than 20 percent of the aggregate
17amount of the credit that may be allocated pursuant to this section
18shall be allocated to any one taxpayer.

begin insert

19(5) (A) Each fiscal year, beginning with the 2018-19 fiscal
20year, 25 percent of the aggregate amount of the credit that may
21be allocated pursuant to this section and Section 23689 shall be
22reserved for taxpayers that make qualified sustainable freight
23investments.

end insert
begin insert

24(B) For purposes of this paragraph, “qualified sustainable
25freight investment” means the purchase or installation, or a
26proposed future purchase or installation, of zero-emissions and
27near-zero-emissions equipment and supporting infrastructure for
28use by or at a marine terminal in a California seaport.

end insert
begin insert

29(C) For purposes of this paragraph, the Franchise Tax Board
30shall review the books and records of the taxpayer allocated a
31credit amount pursuant to this paragraph to ensure compliance
32with the terms and agreements of the written agreement and notify
33GO-Biz of a possible breach of the written agreement by a taxpayer
34and provide detailed information regarding the basis for that
35determination.

end insert

36(h) GO-Biz may prescribe rules and regulations as necessary to
37carry out the purposes of this section. Any rule or regulation
38prescribed pursuant to this section may be by adoption of an
39emergency regulation in accordance with Chapter 3.5 (commencing
P8    1with Section 11340) of Part 1 of Division 3 of Title 2 of the
2Government Code.

3(i) A written agreement between GO-Biz and a taxpayer with
4respect to the credit authorized by this section shall comply with
5existing law on the date the agreement is executed.

6(j) (1) Upon the effective date of this section, the Department
7of Finance shall estimate the total dollar amount of credits that
8will be claimed under this section with respect to each fiscal year
9from the 2013-14 fiscal year to the 2024-25 fiscal year, inclusive.

10(2) The Franchise Tax Board shall annually provide to the Joint
11Legislative Budget Committee, by no later than March 1, a report
12of the total dollar amount of the credits claimed under this section
13with respect to the relevant fiscal year. The report shall compare
14the total dollar amount of credits claimed under this section with
15respect to that fiscal year with the department’s estimate with
16respect to that same fiscal year. If the total dollar amount of credits
17claimed for the fiscal year is less than the estimate for that fiscal
18year, the report shall identify options for increasing annual claims
19of the credit so as to meet estimated amounts.

20(k) This section is repealed on December 1, 2025.

21

SEC. 3.  

Section 23689 of the Revenue and Taxation Code is
22amended to read:

23

23689.  

(a) (1) For each taxable year beginning on and after
24January 1, 2014, and before January 1, 2025, there shall be allowed
25as a credit against the “tax,” as defined in Section 23036, an amount
26as determined by the committee pursuant to paragraph (2) and
27approved pursuant to Section 18410.2.

28(2) The credit under this section shall be allocated by GO-Biz
29with respect to the 2013-14 fiscal year through and including the
302017-18 fiscal year. The amount of credit allocated to a taxpayer
31with respect to a fiscal year pursuant to this section shall be as set
32forth in a written agreement between GO-Biz and the taxpayer and
33shall be based on the following factors:

34(A) The number of jobs the taxpayer will create or retain in this
35state.

36(B) The compensation paid or proposed to be paid by the
37taxpayer to its employees, including wages and fringe benefits.

38(C) The amount of investment in this state by the taxpayer.

P9    1(D) The extent of unemployment or poverty in the area
2according to the United States Census in which the taxpayer’s
3project or business is proposed or located.

4(E) The incentives available to the taxpayer in this state,
5including incentives from the state, local government, and other
6entities.

7(F) The incentives available to the taxpayer in other states.

8(G) The duration of the proposed project and the duration the
9taxpayer commits to remain in this state.

10(H) The overall economic impact in this state of the taxpayer’s
11project or business.

12(I) The strategic importance of the taxpayer’s project or business
13to the state, region, or locality.

14(J) The opportunity for future growth and expansion in this state
15by the taxpayer’s business.

16(K) The extent to which the anticipated benefit to the state
17exceeds the projected benefit to the taxpayer from the tax credit.

18(3) The written agreement entered into pursuant to paragraph
19(2) shall include:

20(A) Terms and conditions that include the taxable year or years
21for which the credit allocated shall be allowed, a minimum
22compensation level, and a minimum job retention period.

23(B) Provisions indicating whether the credit is to be allocated
24in full upon approval or in increments based on mutually agreed
25upon milestones when satisfactorily met by the taxpayer.

26(C) Provisions that allow the committee to recapture the credit,
27in whole or in part, if the taxpayer fails to fulfill the terms and
28conditions of the written agreement.

29(b) For purposes of this section:

30(1) “Committee” means the California Competes Tax Credit
31Committee established pursuant to Section 18410.2.

32(2) “GO-Biz” means the Governor’s Office of Business and
33Economic Development.

34(c) For purposes of this section, GO-Biz shall do the following:

35(1) Give priority to a taxpayer whose project or business is
36located or proposed to be located in an area of high unemployment
37or poverty.

38(2) Negotiate with a taxpayer the terms and conditions of
39proposed written agreements that provide the credit allowed
40pursuant to this section to a taxpayer.

P10   1(3) Provide the negotiated written agreement to the committee
2for its approval pursuant to Section 18410.2.

3(4) Inform the Franchise Tax Board of the terms and conditions
4of the written agreement upon approval of the written agreement
5by the committee.

6(5) Inform the Franchise Tax Board of any recapture, in whole
7or in part, of a previously allocated credit upon approval of the
8recapture by the committee.

9(6) Post on its Internet Web site all of the following:

10(A) The name of each taxpayer allocated a credit pursuant to
11this section.

12(B) The estimated amount of the investment by each taxpayer.

13(C) The estimated number of jobs created or retained.

14(D) The amount of the credit allocated to the taxpayer.

15(E) The amount of the credit recaptured from the taxpayer, if
16applicable.

17(d) For purposes of this section, the Franchise Tax Board shall
18do all of the following:

19(1) (A) Except as provided in subparagraph (B), review the
20books and records of all taxpayers allocated a credit pursuant to
21this section to ensure compliance with the terms and conditions
22of the written agreement between the taxpayer and GO-Biz.

23(B) In the case of a taxpayer that is a “small business,” as
24defined in Section 23626, review the books and records of the
25taxpayer allocated a credit pursuant to this section to ensure
26compliance with the terms and conditions of the written agreement
27between the taxpayer and GO-Biz when, in the sole discretion of
28the Franchise Tax Board, a review of those books and records is
29appropriate or necessary in the best interests of the state.

30(2) Notwithstanding Section 19542:

31(A) Notify GO-Biz of a possible breach of the written agreement
32by a taxpayer and provide detailed information regarding the basis
33for that determination.

34(B) Provide information to GO-Biz with respect to whether a
35taxpayer is a “small business,” as defined in Section 23626.

36(e) In the case where the credit allowed under this section
37exceeds the “tax,” as defined in Section 23036, for a taxable year,
38the excess credit may be carried over to reduce the “tax” in the
39following taxable year, and succeeding five taxable years, if
40necessary, until the credit has been exhausted.

P11   1(f) Any recapture, in whole or in part, of a credit approved by
2the committee pursuant to Section 18410.2 shall be treated as a
3mathematical error appearing on the return. Any amount of tax
4 resulting from that recapture shall be assessed by the Franchise
5Tax Board in the same manner as provided by Section 19051. The
6amount of tax resulting from the recapture shall be added to the
7tax otherwise due by the taxpayer for the taxable year in which
8the committee’s recapture determination occurred.

9(g) (1) The aggregate amount of credit that may be allocated
10in any fiscal year pursuant to this section and Section 17059.2 shall
11be an amount equal to the sum of subparagraphs (A), (B), and (C),
12less the amount specified in subparagraphs (D) and (E):

13(A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal
14year, one hundred fifty million dollars ($150,000,000) for the
152014-15 fiscal year, and two hundred million dollars
16($200,000,000) for each fiscal year from 2015-16 to 2017-18,
17inclusive.

18(B) The unallocated credit amount, if any, from the preceding
19fiscal year.

20(C) The amount of any previously allocated credits that have
21been recaptured.

22(D) The amount estimated by the Director of Finance, in
23consultation with the Franchise Tax Board and the State Board of
24Equalization, to be necessary to limit the aggregation of the
25estimated amount of exemptions claimed pursuant to Section
266377.1 and of the amounts estimated to be claimed pursuant to
27this section and Sections 17053.73, 17059.2, and 23626 to no more
28than seven hundred fifty million dollars ($750,000,000) for either
29the current fiscal year or the next fiscal year.

30(i) The Director of Finance shall notify the Chairperson of the
31Joint Legislative Budget Committee of the estimated annual
32allocation authorized by this paragraph. Any allocation pursuant
33to these provisions shall be made no sooner than 30 days after
34written notification has been provided to the Chairperson of the
35Joint Legislative Budget Committee and the chairpersons of the
36committees of each house of the Legislature that consider
37appropriation, or not sooner than whatever lesser time the
38Chairperson of the Joint Legislative Budget Committee, or his or
39her designee, may determine.

P12   1(ii) In no event shall the amount estimated in this subparagraph
2be less than zero dollars ($0).

3(E) (i) For the 2015-16 fiscal year and each fiscal year
4thereafter, the amount of credit estimated by the Director of Finance
5to be allowed to all qualified taxpayers for that fiscal year pursuant
6to subparagraph (A) or subparagraph (B) of paragraph (1) of
7subdivision (c) of Section 23636.

8(ii) If the amount available per fiscal year pursuant to this section
9and Section 17059.2 is less than the aggregate amount of credit
10estimated by the Director of Finance to be allowed to qualified
11taxpayers pursuant to subparagraph (A) or subparagraph (B) of
12paragraph (1) of subdivision (c) of Section 23636, the aggregate
13amount allowed pursuant to Section 23636 shall not be reduced
14and, in addition to the reduction required by clause (i), the
15aggregate amount of credit that may be allocated pursuant to this
16section and Section 17059.2 for the next fiscal year shall be reduced
17by the amount of that deficit.

18(iii) It is the intent of the Legislature that the reductions specified
19in this subparagraph of the aggregate amount of credit that may
20be allocated pursuant to this section and Section 17059.2 shall
21continue if the repeal dates of the credits allowed by this section
22and Section 17059.2 are removed or extended.

23(2) (A) In addition to the other amounts determined pursuant
24to paragraph (1), the Director of Finance may increase the
25aggregate amount of credit that may be allocated pursuant to this
26section and Section 17059.2 by up to twenty-five million dollars
27($25,000,000) per fiscal year through the 2017-18 fiscal year. The
28amount of any increase made pursuant to this paragraph, when
29combined with any increase made pursuant to paragraph (2) of
30subdivision (g) of Section 17059.2, shall not exceed twenty-five
31million dollars ($25,000,000) per fiscal year through the 2017-18
32fiscal year.

33(B) It is the intent of the Legislature that the Director of Finance
34increase the aggregate amount under subparagraph (A) in order to
35mitigate the reduction of the amount available due to the credit
36allowed to all qualified taxpayers pursuant to subparagraph (A) or
37(B) of paragraph (1) of subdivision (c) of Section 23636.

38(3) Each fiscal year, 25 percent of the aggregate amount of the
39credit that may be allocated pursuant to this section and Section
P13   117059.2 shall be reserved for “small business,” as defined in
2Section 17053.73 or 23626.

3(4) Each fiscal year, no more than 20 percent of the aggregate
4amount of the credit that may be allocated pursuant to this section
5shall be allocated to any one taxpayer.

begin insert

6(5) (A) Each fiscal year, beginning with the 2018-19 fiscal
7year, 25 percent of the aggregate amount of the credit that may
8be allocated pursuant to this section and Section 23689 shall be
9reserved for taxpayers that make qualified sustainable freight
10investments.

end insert
begin insert

11(B) For purposes of this paragraph, “qualified sustainable
12freight investment” means the purchase or installation, or a
13proposed future purchase or installation, of zero-emissions and
14near-zero-emissions equipment and supporting infrastructure for
15use by or at a marine terminal in a California seaport.

end insert
begin insert

16(C) For purposes of this paragraph, the Franchise Tax Board
17shall review the books and records of the taxpayer allocated a
18credit amount pursuant to this paragraph to ensure compliance
19with the terms and agreements of the written agreement and notify
20GO-Biz of a possible breach of the written agreement by a taxpayer
21and provide detailed information regarding the basis for that
22determination.

end insert

23(h) GO-Biz may prescribe rules and regulations as necessary to
24carry out the purposes of this section. Any rule or regulation
25prescribed pursuant to this section may be by adoption of an
26emergency regulation in accordance with Chapter 3.5 (commencing
27with Section 11340) of Part 1 of Division 3 of Title 2 of the
28Government Code.

29(i) (1) A written agreement between GO-Biz and a taxpayer
30with respect to the credit authorized by this section shall not
31restrict, broaden, or otherwise alter the ability of the taxpayer to
32assign that credit or any portion thereof in accordance with Section
3323663.

34(2) A written agreement between GO-Biz and a taxpayer with
35respect to the credit authorized by this section must comply with
36existing law on the date the agreement is executed.

37(j) (1) Upon the effective date of this section, the Department
38of Finance shall estimate the total dollar amount of credits that
39will be claimed under this section with respect to each fiscal year
40from the 2013-14 fiscal year to the 2024-25 fiscal year, inclusive.

P14   1(2) The Franchise Tax Board shall annually provide to the Joint
2Legislative Budget Committee, by no later than March 1, a report
3of the total dollar amount of the credits claimed under this section
4with respect to the relevant fiscal year. The report shall compare
5the total dollar amount of credits claimed under this section with
6respect to that fiscal year with the department’s estimate with
7respect to that same fiscal year. If the total dollar amount of credits
8claimed for the fiscal year is less than the estimate for that fiscal
9year, the report shall identify options for increasing annual claims
10of the credit so as to meet estimated amounts.

11(k) This section is repealed on December 1, 2025.

12

SEC. 4.  

This act provides for a tax levy within the meaning of
13Article IV of the Constitution and shall go into immediate effect.



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